Correlation Between City Union and Max Healthcare
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By analyzing existing cross correlation between City Union Bank and Max Healthcare Institute, you can compare the effects of market volatilities on City Union and Max Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in City Union with a short position of Max Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Max Healthcare.
Diversification Opportunities for City Union and Max Healthcare
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between City and Max is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Max Healthcare Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max Healthcare Institute and City Union is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on City Union Bank are associated (or correlated) with Max Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Healthcare Institute has no effect on the direction of City Union i.e., City Union and Max Healthcare go up and down completely randomly.
Pair Corralation between City Union and Max Healthcare
Assuming the 90 days trading horizon City Union Bank is expected to under-perform the Max Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, City Union Bank is 1.71 times less risky than Max Healthcare. The stock trades about -0.15 of its potential returns per unit of risk. The Max Healthcare Institute is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 97,975 in Max Healthcare Institute on October 30, 2024 and sell it today you would earn a total of 5,020 from holding Max Healthcare Institute or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
City Union Bank vs. Max Healthcare Institute
Performance |
| Timeline |
| City Union Bank |
| Max Healthcare Institute |
City Union and Max Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Max Healthcare
The main advantage of trading using opposite City Union and Max Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Max Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Max Healthcare will offset losses from the drop in Max Healthcare's long position.| City Union vs. Aarey Drugs Pharmaceuticals | City Union vs. Mangalam Drugs And | City Union vs. Bodhi Tree Multimedia | City Union vs. Kilitch Drugs Limited |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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